24 July 2013

More Motown Vibrations

You can read my recent post at The Faculty Lounge here in which I I express my agreement with Adam Levitin that Detroit's Chapter 9 filing did not violate Michigan's constitution. We might find out later today if Bankruptcy Judge Steven Rhodes agrees. More will follow as events warrant.

As I linked in my other post, you can go here to download a working draft of an article about the Stockton, California bankruptcy. (By "working draft" I mean it's not ready for prime time so I would like input.) One of the most important issues in Stockton is at the crux of the question of whether Detroit can be in bankruptcy: Do state law priorities for payment of accrued pension benefits apply equally in bankruptcy? I think not but that conclusion simply opens another can of worms, which entails something like the prisoner's dilemma for all parties in the case.

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